Case Study – The Ink is Gray A cost control ethical dilemma was presented in Chapter 13 where Dardina, the Sous Chef, was taking an expensive cabernet from the liquor inventory without checking it out. It was for use in a marinade. Chef Erickson dealt with the problem in Gilded Marinade and gave her a written warning. In The Ink is Gray Dardina has gone over Chef Eric's head to complain to Heidi Bell, the Asst. G.M., that the written warning wasn't fair. She believed she got the warning because she was a woman and an African American. Now Eric wants to fire her for going over his head and is meeting with Heidi and John, the G.M., to figure out what to do. There are legal and ethical issues involved here. Let's try to sort them out. First the legal issues: Because Dardina has received two written warnings, it sounds like FOI is using a progressive discipline approach. Dardina is aware that one more warning will result in her termination. If FOI has a progressive discipline system in place, it cannot have "employment-at-will," where employers can terminate employees at any time for any reason. Do we want our employees going over our heads to our supervisors? They do this when they feel they have been unfairly treated. Have any of the companies you worked for had grievance procedures in place? What were they? From what we know about the way FOI is run, they may not have a grievance procedure in place. It is important to have a grievance procedure so employees know what to do if they are dissatisfied with an action or decision of their manager. Review the FOI Organization Chart in your text. If FOI had a grievance procedure in place, Dardina would most likely be required to take her complaint first to Chef Eric. If dissatisfied with the results, she would probably take her concerns to John Fallen, Chef Eric's supervisor. Why do you think Dardina took her concerns to Heidi? Heidi correctly took the matter to John, because he is Eric's supervisor and it would be inappropriate for her to deal with this. How does Eric feel about Dardina going over his head? Fortunately it sounds like he is not allowed to fire her without permission from John. Employees, who believe they are being terminated because of gender, age, ethnic background, race, or religion, are protected under the Title VII of the Civil Rights Act of 1964. They can file complaints with the Equal Employment Opportunity Commission (EEOC) that enforces Title VII, or Wrongful Discharge suits can be brought by employees who feel they have been treated unfairly. The question is whether or not Dardina's termination would be fair. If it's not, she could win a lawsuit, be reinstated and collect back wages and damages. John, in his meeting with Heidi and Chef Eric, is trying to avoid any kind of legal action. The whole point of all of these ethics lessons is to be able to analyze a decision we are thinking of making BEFORE we make it, to avoid possible negative consequences. John has to decide whether to allow Eric to terminate Dardin for going over his head. Analyze the decision using the Ethics Analysis Form below. The form has spaces for the decision option we are considering. Enter the stakeholders: Dardina, Eric, John, other employees, customers, and FOI) John is the decision maker in this situation. Answer the questions below for each of the stakeholders and enter your answers on the form. When you are completed with your analysis, compare your answers to those on the key at the end of the lesson. Ethics Analysis Form Decision Option: Terminate Dardina for going over Chef Eric's head Stakeholders Principles Consequences Dardina What are the consequences to Dardina if she is fired? What might she do if she is fired? How likely is Dardina to see an attorney or contact the EEOC? Could she win? Whether or not she takes legal action, she will most likely tell other employees and friends/family that she was treated unfairly. Chef Eric How could Dardina's termination affect Chef Eric? Ask any other questions that will get to the possible consequences for Chef Eric. John Fallen, G.M. (Decision Maker) John is Chef Eric's supervisor, and it appears that John has to okay any terminations. What could happen if he okays Chef Eric's desire to fire Dardina? How might Chef Eric react to John if he decides not to approve the termination? Other Employees How might Dardina's fellow workers in the foodservice react to her termination? How might it affect their behavior? Customers Could FOI guests be affected by Dardina's termination? How? FOI It's possible that Dardina could just go away if terminated and there would be no direct affect on FOI. If she decides to sue, though, how could this affect FOI? What about any bad publicity? Ethical Principles See the Ethical Principles below. John is ultimately the responsible party in this situation. He has to approve the decision to terminate Dardina. He will be held Accountable if FOI is sued or receives bad publicity. It is imperative for him to make a good decision. He must take his responsibility and not just okay whatever Eric wants without knowing all the facts and considering all of the consequences. John's Loyalty must be to FOI, and he must have a Commitment to Excellence if he is to do what is best for the inn. Is Honesty an issue in this decision? (Yes. John must be able to identify the real issues here and what is right.) Integrity? (Yes. John must be willing to do what is right even if it means standing up to Eric or hurting Dardina.) Trustworthiness? (Yes. Everyone must know that John will do the right thing in all cases. He can be trusted to make the right decisions.) Fairness? (Yes. John must determine if Dardina is being treated fairly.) Concern & Respect for Others? (Yes. John will determine whether or not Dardina will be out of work. These are not decisions to take lightly.) Leadership? (Yes. John's decision and how he handles it being carried out determine whether or not FOI management and employees accept it and how they react.) Reputation and Morale? (Yes. The wrong decision or the right decision mishandled can result in upset employees. Morale could suffer and so could FOI's reputation as a good place to work.) Other Decision Options The key to this case is for John to determine whether or not Dardina should be terminated. Going over a supervisor's head could be construed as insubordination and grounds for termination. Other employees might be shocked and frightened and feel that it was unfair if Dardina was fired for going over Chef Eric's head. How would you feel if that happened to you at work? Do you think Dardina knew she was doing something that could get her fired? Do you think she was told in advance that going over Chef Eric's head would be insubordination and grounds for termination? Most of us do not respond well to authoritarian management styles. The "I'm the boss; do as I say or else" attitude doesn't work well with today's employees. To fire Dardina for going over Eric's head would most likely not sit well with other employees. If FOI did have a grievance procedure in place, it would be unlikely that Dardina's complaint would go to Heidi since she isn't Eric's supervisor. If there was a grievance procedure in place and Dardina took her complaint to the wrong person, does that seem to be grounds for termination? (No. The complaint would be referred to the proper authority.) There seems to be a progressive discipline process in place which usually means that an employee can be terminated after three written warnings. Dardina already has two written warnings - - one for using careless procedures and dropping all the steaks and the other for taking the wrong wine and not signing it out on the liquor room spill sheet. Could she be written up for going over Eric's head? That would give her three written warnings, and she could then be terminated. It becomes a question of whether or not she knew that she was not supposed to do what she did. And, in fact, both of the previous written warnings were for things that we were uncertain she had actually been trained on or told the correct way in the first place. We have heard that "ignorance of the law is no excuse." Our society has an entire legal industry (police, attorneys, prosecutors, jailers, etc.) to deal with criminals. In employment situations, however, it is essential that we spell out exactly what employees can and cannot do and what the consequences will be for failing to follow the rules. We want to assure that all employees are doing what they are supposed to be doing. We do not want to have to deal with wrongdoing. It takes our time and money and causes problems for us when our employees are not following the rules. Why was Dardina written up this last time? You may need to review Gilded Marinade. Does it seem that Dardina was written up because she is African American? She was not doing things the way Chef Eric wants them done. He has now had enough and wants her gone. Perhaps, though, she is not doing what he wants her to do because he has not told her and shown her specifically what he wants. We do not know this for sure, but there does seem to be a lack of specific management direction at FOI. Everyone is supposed to know what to do, but it turns out they often don't. This is a management deficiency and employees should not be punished for it. Terminating Dardina would most likely not result in an EEOC finding of cause that discrimination took place, but she could have grounds for a wrongful termination suit, in that she had not been properly trained in the first place. It's quite possible that Dardina would not opt to go to the EEOC or to an attorney. She would, however, suffer the insult and embarrassment of being terminated, and there could be considerable bad feelings from her and other sympathetic employees. Poor management is not an excuse for firing employees. Unemployment compensation is often given to employees who have been fired by incompetent management. We are not certain if Dardina is choosing not to follow the rules, if she was never told the rules, or if there just weren’t any written rules to begin with. We have seen no evidence that Dardina was given any additional training or supervision to improve her performance after the first write-up. If Chef Eric made an effort to do this and had in place specific written rules that she had been made to understand, but she then refused to obey them, yes, she should be terminated. Unless this is the case, management should, instead, make sure that there are policies and procedures in place, training designed and implemented to assure understanding of them, and supervision to assure compliance. Hiring a replacement for Dardina, without making any changes in the way Chef Eric trains and supervises, could result in the same end. Professional managers do not rely on luck. They hire appropriate personnel who are capable of doing the job, and then they train and supervise them to ensure they are doing it correctly. Ethical Principles for Hospitality Managers Honesty: Hospitality managers are honest and truthful. They do not mislead or deceive others by misrepresentations. Integrity: Hospitality managers demonstrate the courage of their convictions by doing what they know is right even when there is pressure to do otherwise. Trustworthiness: Hospitality managers are trustworthy and candid in supplying information and in correcting misapprehensions of fact. They do not create justifications for escaping their promises and commitments. Loyalty: Hospitality managers demonstrate loyalty to their companies in devotion to duty and loyalty to colleagues by friendship in adversity. They avoid conflicts of interest; do not use or disclose confidential information; and should they accept other employment, they respect the proprietary information of their former employer. Fairness: Hospitality managers are fair and equitable in all dealings; they do not abuse power arbitrarily nor take undue advantage of another’s mistakes or difficulties. They treat all individuals with equality, with tolerance for and acceptance of diversity and with an open mind. Concern and Respect for Others: Hospitality managers are concerned, respectful, compassionate and kind. They are sensitive to the personal concerns of their colleagues and live the “Golden Rule.” They respect the rights and interest of all those who have a stake in their decisions. Commitment to Excellence: Hospitality managers pursue excellence in performing their duties and are willing to put more into their job than they can get out of it. Leadership: Hospitality managers are conscious of the responsibility and opportunities of their position of leadership. They realize that the best way to instill ethical principles and ethical awareness in their organizations is by example. They walk their talk! Reputation and Morale: Hospitality managers seek to protect and build the company’s reputation and the morale of its employees by engaging in conduct that builds respect and by taking whatever actions are necessary to correct or prevent inappropriate conduct of others. Accountability: Hospitality managers are personally accountable for the ethical quality of their decisions as well as those of their subordinates. KEY – Ethics Analysis Form The Ink is Gray Decision Option: Terminate Dardina for going over Chef Eric's head Stakeholders Principles Consequences Dardina Chef Eric John Fallen, G.M. (Decision Maker) Other Employees Honesty Integrity Trustworthiness Loyalty Fairness Concern & Respect for Others Commitment to Excellence Leadership Reputation & Morale Accountability Dardina would be out of work without a good reference. Dardina could apply for unemployment compensation and possibly get it. Dardina could tell family and friends that she was treated unfairly. Dardina could tell other employees that she was treated unfairly. Dardina could contact the EEOC who would investigate to see if there is cause to believe that unlawful discrimination has occurred. Dardina could file a wrongful discharge suit. If kitchen staff believe Dardina was treated unfairly by Chef Eric, they could become less cooperative, less respectful, performance and morale could fall, and turnover could increase. All of which would make it harder for Chef Eric to manage his department. If, however, kitchen staff thought Dardina was not unfairly treated and were not impressed with Dardina's performance, they may be glad she's gone and respect Chef Eric for replacing her with a better employee. If John does not allow Chef Eric to fire Dardina, Chef Eric's attitude toward John may deteriorate. Chef Eric may become less cooperative and collegial with John. If John does not make the right decision, he will be held responsible for any negative consequences to FOI. If other employees believe Dardina was treated unfairly they may have less respect for both Eric and John. They may fear that they could also be treated unfairly. Employees could become less Guests FOI cooperative and turnover could increase. Guests may not have any idea there is a problem. If performance deteriorates or turnover increases causing performance problems with inexperienced staff, guests could be dissatisfied with the food. If guests hear about lawsuits or legal actions involving discrimination, they may choose not to go to FOI. If FOI loses a lawsuit, they may have to reinstate Dardina and pay lost wages and damages. Bad publicity can harm FOI's reputation. Word-of-mouth can harm FOI's reputation as a good place to work or patronize. It's possible there will be no affect.